HEG Limited has completed its composite scheme of arrangement, resulting in a name change to HEG Advanced Materials Limited effective September 2, 2026. The restructuring separates the company’s graphite electrodes business into a distinct listed entity while amalgamating Bhilwara Energy Limited into the existing platform.

The National Company Law Tribunal (NCLT), Indore Bench, sanctioned the scheme on August 13, 2026. The Registrar of Companies, Gwalior, issued a fresh Certificate of Incorporation to formalize the name change. The scheme became effective on September 1, 2026, with September 7, 2026, designated as the record date for shareholder entitlements.

Structural Reorganization

The reorganization creates two independently listed companies with focused management teams. The graphite electrodes business transfers to HEG Graphite Limited, the resulting company under the scheme. This entity is proposed to be renamed HEG Limited and will operate as a pure-play graphite electrodes company. It is expected to list on the BSE and NSE in approximately 45 days, likely in the second half of October 2026.

HEG Advanced Materials Limited retains the advanced materials, battery energy solutions, and green power businesses. Bhilwara Energy Limited amalgamates into this entity and stands dissolved without winding up.

Shareholder Entitlements

Shareholders of HEG Advanced Materials Limited as on the record date receive one fully paid-up equity share of face value ₹2 each in the graphite company for every one share held in the advanced materials entity. This constitutes a one-for-one (1:1) mirror basis entitlement.

Leadership Changes

Mr. Ravi Jhunjhunwala continues as Chairman, Managing Director, and CEO of the graphite company from September 1, 2026. He retains a non-executive role on the board of HEG Advanced Materials Limited.

Mr. Riju Jhunjhunwala is elevated to Chairman, Managing Director, and CEO of HEG Advanced Materials Limited for a five-year term, subject to shareholder approval. He also joins the board of HEG Graphite Limited in a non-executive capacity.

Business Focus

HEG Advanced Materials Limited positions itself as a platform for advanced battery materials and graphene. Leveraging over 50 years of graphitization expertise, the company develops large-scale anode materials, graphene, and silicon-based anodes for the EV, BESS, and energy-storage ecosystems.

HEG received an Environmental, Social and Governance (ESG) score of 60 for FY26, a downgrade from the 63 recorded in FY25. NSE Sustainability Ratings & Analytics Limited assigned the "Adequate" rating category based on publicly available data.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating pertains to the period prior to the effectiveness of the Composite Scheme of Arrangements, which demerged the graphite business into a separate entity effective September 1, 2026.

Rating Breakdown

The overall ESG score comprises three pillars with specific weightages and scores:

The Core ESG Rating, derived from BRSR Core disclosures, stands at 55. This includes an environment score of 37, a social score of 66, and a governance score of 67.

What the Numbers Show

The divergence between the Social score (77) and the Environment score (45) highlights a significant gap in performance areas. While the company reports zero fatalities and high health insurance coverage for permanent employees, it faces challenges in environmental stewardship. Key environmental metrics show greenhouse gas emissions and energy intensity exceeding industry averages, despite year-on-year decreases in emissions intensity.

Key Drivers

Environmental factors weighed heavily on the final score. The report notes that reliance on renewable energy is minimal, with only 0.44% of energy consumed from renewable sources. Waste intensity stands at 1.47 metric tonnes per crore rupee of revenue, above industry averages. However, waste recycling and recovery rates increased by 2% compared to the previous year.

Social metrics showed strength in safety and compliance. The Lost Time Incident Rate (LTIR) for employees was 0, and there were no reported fatalities among employees or workers. CSR spending exceeded obligations at 106.67% of the required amount. However, women remain underrepresented, constituting just 6.05% of the workforce.

Governance practices met regulatory requirements but faced scrutiny on executive compensation. The board includes 50% independent directors, fulfilling statutory norms. However, the CEO-to-median employee pay ratio is significantly higher than industry peers, and executive remuneration is not linked to ESG performance parameters.